Holt Renfrew enters the off-price fray with hr2

Holt Renfrew isn’t taking the American retail invasion lightly. The luxury retailer has announced plans to open an off-price offshoot called hr2 that will carry lower-priced styles and excess inventory from all but one of Holt Renfrew’s top 50 designer brands. The first hr2 stores will open in Brossard, Quebec, and a mystery Ontario location inMarch 2013, sending a clear message to incoming retailers Target and Nordstrom (arriving in 2013 and 2014, respectively) that it intends to remain competitive in a more crowded market. (In fact, the new format mimics Nordstrom’s moves south of the border with its discount arm, Rack.) Holt’s will also convert its Last Call outlet into an hr2, switching the focus to new merchandise rather than last season’s clearance items—though reportedly there will still be a few bargain racks to sift through. [Globe and Mail]